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yeah, the CC debt clouds things a little bit until we know a little more info.
Would you be willing to give us a little more info. here? Maybe put your mortgage and CC debt into a pot and label it 100%. Break down that 100% into the corresponding % for each one, along with current interest rates for each. That would help us advise you on how to handle the CC debt a bit more clearly if we know how it stacks up against your other debt (mortgage). This would be an anonymous way for us to get an accurate picture without you needing to disclose specific dollar amounts for either.
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Relatively low on the CC debt: 8% on one, 9.99% on another. Don't want to consolidate to the lower rate card just yet because I don't want to push up anywhere near the limit.
My original hope was to either do a cash out refi or roll the HELOC into the new mtg and use that savings to pay down the debt. After talking with 2 brokers, my original broker who now works at a bank and couldn't help me at all and 1 guy at Chase, I've been told I can't do a cash out refi.
The HELOC (which is closed) makes the amount owed about flat to the current value. So, I'm not technically underwater, but no real value, either. Annnnddddd, don't forget I don't have a W2. I do have all my tax info and a good credit score, but no verifiable source of income.
Both brokers have come up with the same gameplan so I'm thinking that may be all that's out there for me.
DM
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I refinanced my first home replacing a 30 year with a 30 year at a much lower rate. I also borrowed extra to pay off all my credit card debt. In the end I extended my loan period by a few years BUT I had about $500 extra every month during a time when I could really use it. So I think it can make sense to replace a 30 with a 30.
Ideally you should replace it with a 20 or 15 and hopefully fold the credit card debt into it. You might still save money overall.
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Generally, the idea to do the refi for 30 years and put the savings into paying your CC debt is right.
If the refi fees are higher than the interest you'll save by paying $300 per month towards the credit cards until they are paid off, and then applying the $300 to paying down the mortgage early after the credit card debt is paid, then you shouldn't refi. I doubt that's the case.
Calculate: how much interest do you save by paying down the CC debt $300 per month faster? Then figure out how long paying off the CC debt will take. Then assume you'll put the $300 per month into Payinf down the mortgage, starting then. How much earlier will you pay off the mortgage and how much interest will that save you? Then total up the two amounts of interest saved (CC and mortgage), and compare with the refi fees.
Feel free to contact me with a PM.
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Generally, the idea to do the refi for 30 years and put the savings into paying your CC debt is right.
If the refi fees are higher than the interest you'll save by paying $300 per month towards the credit cards until they are paid off, and then applying the $300 to paying down the mortgage early after the credit card debt is paid, then you shouldn't refi. I doubt that's the case.
Calculate: how much interest do you save by paying down the CC debt $300 per month faster? Then figure out how long paying off the CC debt will take. Then assume you'll put the $300 per month into Payinf down the mortgage, starting then. How much earlier will you pay off the mortgage and how much interest will that save you? Then total up the two amounts of interest saved (CC and mortgage), and compare with the refi fees.
All this assumes you can't get any cash out in the refi, which I think you said.
Feel free to contact me with a PM.
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if you can't do 15, do 20.
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Get the 20-30 yr and you can pay it off early but you have the protection of not having your rates change (I assume). I had a 30 yr loan and paid it off early a few dollars each month with my monthly payment. Really nice to have all that equity when I sold.
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If you get a 15 or 20 and then run into trouble in a few years and have to refinance, who knows how high the interest rate might be then. I think get a 30 and make sure any extra payments go to principle.
